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Skydance to Reshape CBS News Amid $8 Billion Paramount Merger

Skydance, an entertainment company poised to acquire Paramount in a significant $8 billion merger, has announced plans to implement changes at CBS News. This week, Skydance informed federal officials that it will appoint an ombudsman to address complaints of bias within the news outlet. The position will be established for a minimum of two years, according to a letter from Skydance’s general counsel, Stephanie Kyoko McKinnon, to Brendan Carr, Chairman of the Federal Communications Commission (FCC).

In its filings with the FCC, released on March 15, 2024, Skydance also committed to discontinuing diversity, equity, and inclusion (DEI) initiatives at the media conglomerate. This move comes amid increasing scrutiny of CBS News’ editorial practices, particularly following criticism from former President Donald Trump and his supporters. Trump accused CBS News’ “60 Minutes” of misleadingly editing an interview with then-Vice President Kamala Harris during the 2024 election cycle, a claim that CBS has denied.

The fallout from these controversies led to Paramount agreeing to a $16 million settlement in response to Trump’s lawsuit. The FCC is currently investigating whether CBS News has engaged in “news distortion,” further complicating the network’s situation. The implications of these events have reverberated within CBS News, leading to significant personnel changes. In April, Bill Owens, the editor of “60 Minutes,” resigned, citing concerns over journalistic independence, followed by the departure of CBS News chief Wendy McMahon in May.

In her correspondence to Carr, McKinnon emphasized that the new management at Paramount will strive to present a diverse range of perspectives across the political spectrum. David Ellison, CEO of Skydance, echoed this sentiment during a recent meeting with Carr, promising to focus on “American storytelling” and uphold a commitment to unbiased journalism.

Ellison, the son of technology entrepreneur Larry Ellison, who co-founded Oracle, has been involved in political contributions, reportedly donating $929,600 to former President Joe Biden‘s re-election campaign, according to records from the Federal Election Commission. This context adds another layer to the ongoing debate over media bias and the role of corporate governance in shaping news narratives.

The conversation surrounding DEI initiatives has gained momentum since Trump signed an executive order in January aimed at curtailing such programs in American corporations. In response, numerous prominent companies have reevaluated their DEI commitments. The FCC is also examining practices at major corporations like Comcast, the owner of NBC News, and Disney, the parent company of ABC News, in relation to their DEI efforts.

As the merger between Skydance and Paramount progresses, the implications for CBS News and its journalistic integrity remain to be seen. The decision to appoint an ombudsman and eliminate DEI programs signals a shift in direction that could redefine how news is reported and perceived in the evolving landscape of American media.

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